Buy American Act Trade Agreement Countries

08 Apr Buy American Act Trade Agreement Countries

As a general rule, the TAA applies in three circumstances: (1) Purchases are valued at more than USD 182,000 for products/services or more than USD 7,008,000 for construction; 2) includes, upon purchase, the products or building materials listed in the trade agreement in question; and (3) None of the other exceptions in trade agreements apply (for example. B contracting is intended for small businesses or is made as a single purchase). With regard to the purchase of products, governments around the world have historically shown a preference for domestically manufactured products. There are laws that require that public funds be used only for the purchase of domestic products, or at least that they offer a price preference for those products. The U.S. Government`s Preference Implementation Act for Domestic Products is known as the Buy American Act (“BAA”). However, the BAA is not always applicable under the Trade Agreements Act (“TAA”). The TAA allows the purchase of products from certain countries other than the United States. Understanding whether the BAA or TAA applies to your supply and whether your products meet applicable standards is essential to avoid liability under the False Claims Act and the termination of a contract. FAR 52.225-5 lists all “designated countries” for TAA purposes. Among the countries that have signed the WTO ACCORD, have a free trade agreement with the United States, or have been identified as “least developed countries” or “Caribbean basin countries.” If it is an acquisition of the Ministry of Defence, the list of designated countries is even longer, as it also includes those that have been identified as “qualifying countries”. The TAA prohibits the government from purchasing finished products from certain non-designated countries (for example.

B China, India), but allows the president to waive national procurement requirements, including the BAA, so that the government can purchase products from other “designated countries.” Designated countries are those that have trade agreements with the United States that require their products to be treated in the same way as domestic U.S. products. The thresholds for the application of the TAA vary according to trade agreements. The most widespread trade agreement is the World Trade Organization`s Agreement on Public Procurement (WTO GPA). The current thresholds for the WTO GPA are $182,000 for goods and services contracts and $7,008,000 for work contracts. GSA calendar contracts are governed by the Trade Agreements Act (TAA), i.e. all products listed in the GSA calendar contract must be manufactured or “essentially processed” in the United States or in a country designated by the AAA.

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